Mitie profit climbs as order book fills

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CONSTRUCTION and outsourcing firm Mitie said increased demand for bundled services had helped boost its full-year profit and that significant outsourcing and energy opportunities would help sustain growth.

Mitie, which provides services from cleaning to engineering, said revenue for the year to 31 March was up 10 per cent to £1.89bn, with profit before tax and other items up 15.3 per cent to £105.7m.

Chief executive Ruby McGregor-Smith said: “What we are seeing is as our contracts grow, they are growing in scale and complexity, “Whereas five years ago the group did lots more single services work, what we are now doing is lots of bigger bundled contracts and I think that is what’s driving the growth.” She said the firm’s government contracts were still in healthy shape.

“We continue to believe Mitie is very well placed to benefit from clients’ needs to save costs and that comes from the group’s breadth of service”, added Investec analyst Guy Hewett.

Mitie said it had a sales pipeline of £11.4bn based on private sector clients, which make up 63 per cent of revenue, while its energy consulting business was strong.